Salesforce (CRM) Return on Invested Capital (ROIC)

Price: $289.03
Market Cap: $276.31B
Avg Volume: 5.41M
Country: US
Industry: Software - Application
Sector: Technology
Beta: 1.3
52W Range: $193.68-318.71
Website: Salesforce

Return on Invested Capital (ROIC) Summary

Salesforce's ROIC measures how effectively the company uses its invested capital to generate profits:

  • Annual: 7.16%
  • Quarterly: 2.19%
  • TTM: 8.50%

What is ROIC?

Return on Invested Capital (ROIC) measures how effectively a company uses its capital from debt and equity to generate profits. ROIC is a useful metric for comparing the efficiency of capital allocation between different companies or across time periods within the same company. A higher ROIC indicates a more efficient use of capital.

Related Metrics

Other important metrics to assess Salesforce's profitability include:

  • ROE (Return on Equity) - measures the return generated on shareholders' equity:
    • Annual: 6.93%
    • Quarterly: 2.48%
    • TTM: 9.58%
  • ROA (Return on Assets) - measures the return generated on the company's assets:
    • Annual: 4.02%
    • Quarterly: 1.55%
    • TTM: 6.11%

These metrics provide insights into Salesforce's profitability and efficiency in using its capital and assets to generate returns. Comparing these ratios with industry benchmarks can offer a deeper understanding of the company's performance.

Annual ROIC

7.16%

Quarterly ROIC

2.19%

TTM ROIC

8.50%

Salesforce Historical ROIC
Historical ROE
Historical ROA

Salesforce Historical Profitability Metrics

The table below shows various profitability metrics for each year, with the latest data available for the last fiscal year 2024.

Year ROIC ROE ROA
2024 7.16% 6.93% 4.02%
2023 1.27% 0.36% 0.21%
2022 -0.87% 2.48% 1.52%
2021 -5.71% 9.81% 6.14%
2020 0.09% 0.37% 0.23%
2019 3.22% 7.11% 3.61%
2018 1.25% 1.36% 0.61%
2017 4.45% 2.40% 1.02%
2016 -1.20% -0.95% -0.37%
2015 -2.50% -6.61% -2.46%